On-chain data shows Bitcoin long-term holders have ramped up their selling recently, something that could lead to further plunge in the crypto’s price.
Bitcoin Exchange Inflow CDD Has Spiked Up Over The Last Day
As pointed out by an analyst in a CryptoQuant post, the current rise in the CDD is the largest since 6th October.
A “Coin Day” is the quantity that 1 BTC accumulates after staying still for 1 day in a single address. If a coin that has amassed some number of Coin Days finally moves to another wallet, its Coin Days counter resets, and the Coin Days are said to be “destroyed.”
The “Coin Days Destroyed” (CDD) metric keeps note of the total number of such Coin Days being destroyed throughout the network on any given day.
Another version of this indicator is the “exchange inflow CDD,” which measures only those Coin Days that were reset because of transactions to centralized exchanges.
Now, here is a chart that shows the trend in the Bitcoin exchange inflow CDD over the past month:
The value of the metric seems to have spiked up during the last day or so Source: BTCUSD on TradingViewFeatured image from Zdeněk Macháček on Unsplash.com, charts from TradingView.com, CryptoQuant.com